Youth unemployment is now above 50 percent in Greece and Spain. That's psychologically as well as economically devastating. It may take a decade or more to restore opportunities to those young people.
Meanwhile, there is already a right-wing extremist backlash in Greece, as the New York Times reports today.These harbingers of hate could be a problem for the rest of Europe, too.
They've been there before -- in 1933.
What the developed world faces isn't merely a liquidity crisis, or a solvency crisis, but a social-political crisis. I hope political leaders can rise to the challenge.